Annual Fixed Costs Are $900,000 and $800,000 for Outsourcing and Insourcing

question 112

Essay

Annual fixed costs are $900,000 and $800,000 for outsourcing and insourcing, respectively, and variable costs are $28 and $32 for outsourcing and insourcing, respectively. If current annual demand is 22,000 units, by how much must demand increase in order for outsourcing to become cheaper?

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Definitions:

Social Clock

A societal concept referring to the culturally preferred timing of major life events, such as marriage, parenthood, and retirement.

Typical Ages

Refer to the average or most common ages at which specific milestones or behaviors are expected to occur in the development of humans.

Career

The pursuit of a lifelong ambition or the general course of progression towards lifelong goals in a professional or vocational context.

Marrying

The act of entering into a legally recognized union with another individual, typically in a ceremony called a wedding.